A tax identification number is required by law for any business operation that earns money or makes sales. This includes businesses such as restaurants, retail stores, construction companies, insurance agencies, real estate agents, and even doctors. If you are opening a new business, it is important to apply for a Mississippi EIN number immediately.
Business owners often use a social security number to open bank accounts, credit cards, and loans. But a tax identification number is necessary for any business operation that involves making sales and earning revenue.
The Internal Revenue Service requires every business to have a Federal Employer Identification Number (FEIN). An FEIN number is used to identify your business and to determine how much you owe in taxes each year. You cannot operate without one.
An individual taxpayer does not need a federal tax identification number (TIN), although some states do require taxpayers to file state tax forms. In most cases, however, there is no penalty for failing to file a state return. Some states require filers to file a return regardless of whether they earn income or make sales.
If you fail to file a return, you could face penalties and interest charges. These include fines and fees charged by the government and additional taxes owed.
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Steps in Obtaining your Tax ID (EIN) Number in Mississippi:
To obtain an Employer Identification Number (EIN), you must complete IRS form SS-4 and submit it along with payment. You must use one of the following methods to make your payment:
• Credit card – VISA, MasterCard, American Express, Discover Card
• Check – Personal check drawn on a bank account belonging to you
• Money Order – A money order payable to the United States Treasury
You cannot purchase a tax identification number over the phone. If you are unable to make the above payments, please contact your local IRS office.
1. Prepare Required Information
The IRS requires certain documents to establish a limited liability company (LLC). This includes the following:
• Articles of Organization – These are filed with the Secretary of State in each state where the LLC is formed. They provide the basic information about the LLC including the names of the members and managers, the LLC’s purpose, the LLC’s location, and the formation date.
• Operating Agreement – This document provides additional detail about how the LLC operates. For example, it describes what happens if there is no manager, vice president, secretary or treasurer. It also explains the duties of the members and managers.
• Tax Identification Number – Every LLC must obtain a federal identification number called a TIN. This number helps identify the LLC for filing taxes. Each member of the LLC must file Form SS-4 with the IRS to apply for a TIN. If the LLC does not have a TIN, the individual members must complete Form SS-5 and attach it to the application form.
• Federal Employer Identification Number – An FELN is required for every employee of the LLC. Employees include owners and officers, directors, managers, employees, agents, contractors, consultants, advisors, attorneys, accountants, appraisers, auditors, and others who perform work for the LLC.
2. Collect Personal Information From Partners
You must collect the personal information of each partner, such as his or her full name, address, Social Security number, driver’s license number, etc. In addition, you must keep records of each partner’s contributions, loans, gifts, distributions, and expenses.
2. Apply for a Mississippi Tax ID Online
The Mississippi Division of Revenue offers three online options for applying for a Mississippi tax ID. You can use one of those methods to apply for a Mississippi sales tax number, a Mississippi income tax number, or both.
To find out what type of Mississippi tax ID you need, follow these steps:
1. Go to mdlbr.com/businesslicense.
2. Click “Apply Now.”
3. Select the type of Mississippi tax ID that you are seeking.
4. Enter your personal information.
5. Answer questions about your business activities.
3. Apply for a Mississippi Tax ID by Phone, Mail, or Fax
Apply for a Mississippi Tax ID online, over the phone, or via mail.
4. How Do You Apply for a State Tax ID Number in Mississippi?
If your business needs a Mississippi state income or payroll identification number, you’ll want one. It’s used for things like hiring Mississippi workers and paying them wages, and for filling out forms related to state taxes.
The application for your business license will require much of the same documentation as the one you submitted for your federal tax ID, including proof of residency and ownership. However, unlike the federal tax ID application process, you won’t be able to choose where to file your business license. Most states require businesses to register within 30 days of opening, so if you’re planning on starting a new business, make sure you do it before then!
If your small business plans on employing people in Mississippi, you’ll almost definitely need a Mississippi state tax identification card. In fact, your small business will almost certainly need one if you’re planning on selling taxable goods and services in Mississippi, or if you’re going to owe Mississippi sales, use, income or excise taxes.
5. How to Get a State Tax ID Number for a Small Business
Some small businesses in Mississippi don’t need a Mississippi sales tax ID, but most of them will. You should determine whether you need one based on the types of services you’ll provide and where you’ll perform them.
If you want to hire employees in Mississippi, you’ll probably need a Mississippi state income or sales/use/value (SV) number. You’ll also need a payment or SV number if you plan on selling taxable goods and services in the state of Mississippi. And you’ll need an income or SV # if you plan on paying any excise (or “sin”) levies.
6. How to Get a State Tax ID Number for a Small Business
A state tax ID number is necessary for most small businesses operating in Mississippi. In addition to filing taxes, you’ll also need one if you’re selling products in the state, opening a bank account, applying for a loan, or setting up a payroll system. You can apply for a state tax ID number online. You’ll need to file an online form if you don’t already have an EIN. After submitting the form, you’ll receive a confirmation email within several days.
Frequently Asked Questions
What is an EIN Number?
An Employer Identification Number (EIN) is a unique number assigned to each business entity in the United States. It’s used for tax purposes and by other government agencies, such as the Social Security Administration.
How is a Mississippi LLC taxed?
Mississippi LLCs are treated as partnerships for federal tax purposes. The IRS has published an extensive set of instructions on calculating a partnership’s income and expenses, including allocating profits and losses between members. This is called “allocating profit or loss” (APL).
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.